Sure. You can correct errors with the text editor, save the file to the disk, and then re-load it into SPIM.
Loading the source file into SPIM does two things: (1) The file is assembled into machine instructions, and (2) the instructions are loaded into SPIM's memory. The text display shows the result.
The text display is the second window from the top. You should see some of the source file in it and the machine instructions they assembled into. The leftmost column are addresses in simulated memory.
Inspect the text display (your own or the above picture).
ori $8,$0,0x2) assemble into?